INTERIM REPORTJANUARY-SEPTEMBER 2019 / NITRO GAMES OYJ

THE INTERIM PERIOD JANUARY – SEPTEMBER 2019 • Revenues(Jan-Sep):389,7KEUR(1796,4KEURoncorrespondingperiod2018).• EBITDA:-2103,7KEUR(-2984,2KEUR).• EBIT:-2573,5KEUR(-3454,0KEUR).• Netprofit:-2581,5KEUR(-3469,4KEUR).• Cashandcashequivalents:414,7KEUR,and448,0KEURofshort-termreceivables(30September2019),and460,0KEURoffundingfromBusinessFinlandreceivedaftertheperiod.

JULY – SEPTEMBER 2019 • Revenues(Jul-Sep):317,7KEUR(744,8KEURoncorrespondingperiod2018).• EBITDA:-260,2KEUR(-831,3KEUR).• EBIT:-416,8KEUR(-987,9KEUR).• Netprofit:-419,3KEUR(-993,2KEUR).

SIGNIFICANT EVENTS DURING JULY – SEPTEMBER 2019 • StartedtheexecutionoftheroadmapofupdatesforthenewversionofHeroesofWarland,withthefirstupdateintroducedinJulyandwithanincreaseinperformancebythenewupdatesduringtheperiod.

• SignedagreementwithNetmarbleEMEAtointroduceHeroesofWarlandtoTurkey,Middle-East,andAfrica.• StartedanewprojectwithAvalancheStudiostodevelopamobilegameutilizingexistingAvalancheStudiosIPwithabudgetof1,25MEUR.

SIGNIFICANT EVENTS AFTER THE PERIOD• Received0,46MEURoffundingasthesecondinstalmentoffundingfromBusinessFinland.

POSITIVE MOMENTUM“Westartedthesecondhalfofthisyearfromaconsiderablybetterposition,comparedtowherewewereatthebeginningofthisyear.Nowduringthesecondhalfoftheyear,wehavestartedtogeneraterevenuesagainandfeelconfidentthatwearewellonourwaytowardsabrighterfuture.Movingforward,weareworkinghardtokeepthepositivemomentumandcontinuethesequentialimprovements.Iamlookingforwardtocontinuingtowardstheendoftheyearwithtwoveryexcitingprojects;HeroesofWarlandandthenewprojectwithAvalancheStudios.”,saysJussiTähtinen,CEOofNitroGames.

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ABOUT NITRO GAMESNitroGamesisafree-to-playmobilegamedeveloperandpublishermakinggamesforthemid-coreusersegment.TheCompanyfocusesonproducingcompetitivemultiplayergameswithhighproductionvalueandhighrevenuepotentialforsmartphonesandtablets.WithNitroGames’powerfulNGPlatformandNGMVP-process,theCompanyisabletodomarketvalidationduringthedevelopmenttoensurehighproductquality.NitroGameshasdevelopedgamessuchasHeroesofWarland,MedalsofWar,RaidsofGlory,EastIndiaCompany,Commander:ConquestoftheAmericas,PiratesofBlackCove.

NitroGames’sharesarelistedonNasdaqFirstNorthGrowthStockholmwiththetickerNITRO.TheCertifiedAdviserisAugmentPartnersAB,info@augment.se,+468-50565172.

www.nitrogames.comFinnishBusinessID:FI21348196

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KEY FINANCIALS

Jul-Sep2019

Jul-Sep2018

Jan–Sep2019

Jan–Sep2018

Full Year2018

NitroGamesOyj

NitroGroup NitroGamesOyj

NitroGroup NitroGamesOyj

AuditedRevenue(EURthousand) 317,7 744,7 389,7 1796,4 2204,2Operatingprofit/loss(EURthousand) -416,7 -987,9 -2573,5 -3454,0 -5734,4Operatingprofit/loss%(EBIT%) -131,2% 132,6% -660,4% -192,3% -260,2%EBITDA(EURthousand) -260,1 -831,3 -2103,7 -2984,2 -5101,0EBITDA% -81,9% -111,6% -539,9% -166,1% -231,4%Netprofit/loss(EURthousand) -419,3 -993,2 -2581,5 -3469,4 -5748,8Cashflowgeneratedfromoperations(EURthousand)

-507,0 -1104,0 -2351,5 -3361,1 -4939,9

Equityratio(%) 56,83% 50,30% 56,83% 50,30% 84,00%Numberofshares,average 3616328 2439169 3616328 2439169 2668910Numberofsharesattheendoftheperiod

3616328 2618328 3616328 2618328 3616328

NumberofShareoptions 449368 298500 449368 298500 307868Equitypershare(EUR) 0,4 0,4 0,4 0,4 1,1Earningspershare(EUR)undiluted -0,1 -0,4 -0,7 -1,3 -1,6Earningspershare(EUR)diluted -0,1 -0,3 -0,6 -1,2 -1,5Netdebt(EURthousand) 556,9 845,9 556,9 845,9 -2523,8Numberofemployees 33 54 42 54 51

(Whencomparinginformationtopreviousyearquarterlyinformation,previousquarterlyyearistheconsolidatedgroupfigures,includingparentcompanyNitroGamesPlcanditssubsidiariesNitroGamesAlphaOyandNitroGamesBetaOy.Subsidiarieshavemergedtotheparentcompanyon31.12.2018.)

(Thecompanywillmakechangesinterminologyusedinitsfinancialreportingatthebeginningof2019.Inthepastyears,thecostofuseracquisition(UA)hasbeenbookedunderOtheroperatingExpenses.Startingfrom2019,thesecostswillbemovedunderMaterialandServices.)

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A WORD FROM JUSSI TÄHTINEN, CEO

Positive momentum

Westartedthesecondhalfofthisyearfromaconsiderablystrongerposition,comparedtowherewewereatthebeginningofthisyear.Nowduringthesecondhalfoftheyear,weareconfidentthatweareontherightpath.

Intheself-publishingbusiness,ourfocusisonHeroesofWarland.Thenewcompletelyre-workedversionofHeroesofWarlandisnowbeingintroducedasaseriesofupdates.Thegameperformanceandmarketingdata,signalsthatwe’reontherightpath.Wehavesystematicallyimprovedthegame,withthefirstnewupdatesandconstantliveoperationactions,basedonthedatawe’vecollected.

OurfocusmarketduringthequarterhasbeeniOSintheUnitedStates.Weselectedthis,tocarefullytargetourresourcestoakeymarketthatvalidatesourgame.TheUnitedStatesisverycompetitiveandexpensiveinmarketing,andweareconfidentthatwhenwegetthegameandthemarketingtosucceedthere,wecanreplicatethatsuccessinothermarketsaswell.

Movingforward,wecontinuetheexecutionoftheroadmapforHeroesofWarland,throughoutthisyearandto2020.Theplanistoimproveandexpandthegamestepbysteptowardsthescale-upphaseinthewesternmarkets.Paralleltothis,weareworkingtogetherwithNetmarbleEMEAinpreparingthegameforthesoft-launchintheMEAregion.Thelifecycleofasuccessfulgameinthiscategorycanbeuptofiveyears.

Intheservicebusiness,westartedanewprojectwithSwedishAAA-studioAvalanche,foranon-disclosedtitle.Theprojecthadasmoothstartduringthequarterandisalreadygeneratingrevenuethroughthefirstmilestonesdeliveredandapproved.TheproductionperiodisuntiltheendofApril2020withadevelopmentbudgetof1,25M€.

WearethrilledtoworktogetherwithAvalancheStudiosutilizingtheirIPandexpertisewithseveralsuccessfulshootergames.Thisprojectisaperfectmatchforusrightnow,utilizingourexpertiseintheshootergenreandthetechnologywehave,withstrongsynergiestoourself-publishingbusiness.Iamlookingforwardtocontinuingtheco-operationlong-term.

Ourrevenuesgrewduringthethirdquarter.Thisisaresultofusnowstep-by-stepmovingtoliveoperationsmodewithHeroesofWarland,andparalleltothat,usnowstartinganewprojectintheservicebusinesswithAvalancheStudios.Movingforward,wearefocusingonfurtherdevelopmentandexpansionofHeroesofWarland,andcontinuingtheco-operationwithAvalancheStudios,tocontinuethepositiveprogresswestartedduringthethirdquarter.

Whilewehavenowstartedtogeneraterevenuesagain,wehavemaintainedthelowercostbase,reflectinginimprovedEBITDA.Thislowercostbaseisaresultofourcostsavingsearlierthisyear.WealsohavetheongoingprojectwithBusinessFinland,whichactsasasourceoffundingforusduringthesecondhalfoftheyearbutshowsinourcashpositionafterthethirdquarter.OurcashpositionhasrecoveredafterthelowpointendofSeptember,duetoanaturaldelayinmilestone-basedinvoicingandthefundingfromBusinessFinland,thatwasreceivedafterthereportingperiod.

Movingforward,weareworkinghardtokeepthepositivemomentumandcontinuethesequentialimprovements.Iamlookingforwardtocontinuingtowardstheendoftheyearwithtwoveryexcitingprojects;HeroesofWarlandandthenewprojectwithAvalancheStudios.

JussiTähtinenCEO,Co-Founder

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“Moving forward, we are working hard to keep the positive momentum and continue the sequential improvements.

I am looking forward to continuing towards the end of the year with two very exciting projects; Heroes of Warland and the new project with Avalanche Studios.”

Jussi TähtinenCEO, Co-Founder

A COMMENT FROM CEO

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SIGNIFICANT EVENTS DURING JULY - SEPTEMBER 2019

Nitro Games started the execution of the roadmap of updates for the new version of Heroes of Warland, with the first update introduced in July and with an increase in performance by the new updates during the period. TherolloutofthenewversionofHeroesofWarlandstartedthissummerasplanned.ThefirstreleaseinJulyissetinanewuniversewithnewvisuals,andmostimportantly,poweredbyournewshooterenginedevelopedduringthefirsthalfofthisyear.ThenewshooterengineimprovestheperformanceofHeroesofWarlandandisalsousedinournewprojects.Thegameperformancedatafromthissummerandearlyfallsignalsthatwe’reontherightpath,bysystematicallyincreasingtheperformanceofthegamewithnewupdatesandliveoperationsbasedonthedata.Movingforward,theexecutionoftheroadmapforHeroesofWarlandcontinueswithaseriesofupdates.Theplanistoexpandthegamestepbysteptowardsthescale-upphaseinthewesternmarkets.Paralleltothis,NitroGamesisworkingtogetherwithNetmarbleEMEAinpreparingthegameforthesoft-launchintheMEAregion.

Nitro Games has signed a Game Distribution and Servicing Agreement with Netmarble EMEA, theregionalofficeofNetmarbleGames,agiantKoreangamespublisherandoneofthefastestgrowingmobilegamingcompaniesintheworldtoday.TheAgreementcoverslicensingofNitroGames’sgame”HeroesofWarland”toNetmarbleEMEAforpublishinginArabicandTurkishspeakingcountries.

Termsoverview:•Period:3yearsfromCommercialLaunch•ServiceFees:500000EUR,paidininstallmentstoNitroGames,tiedtolaunchprogression•Royalties:Net35%toNitroGames•Territories:Turkey,Middle-East,andAfrica•Targetlaunch:H22019,startingwithsoft-launch•Platforms:iOSandAndroid

Nitro Games started a project with Swedish AAA-studio Avalanche Studios for a non-disclosed title. The game will utilize existing Avalanche Studios IP. ThisAgreementisaboutNitroGamesdevelopingamobilegameforAvalancheStudios,aSwedishAAAgamedeveloper,bestknownforitsPCandConsolegamesutilizinghugeopenworlds.TheprojectstartedatthebeginningofH22019withadevelopmentbudgetof€1250000andtheproductionperiodisexpectedtolastuntilApril302020.InthisprojectNitroGamesactsasthedeveloperandAvalancheStudiospaysthedevelopmentfeetoNitroGamesininstallments,basedonapprovedmilestonedeliveries.

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SIGNIFICANT EVENTS AFTER THE PERIOD

Nitro Games has received 460 000 EUR of funding as the second instalment of funding from Business Finland.Theprojecthasprogressedfollowingtheprojectplan,andthereforeNitroGameshasnowreceivedthesecondinstalmentoffundingfromBusinessFinland.TheprojectandfundingsupportthefurtherdevelopmentofHeroesofWarland,whileNitroGamesisfurtherexploringtheopportunitiesconnectedwithesportsonmobile.Thefundingisintheformofasoftloan.ThefirstinstallmentoftheapprovedfundingwasraisedatthebeginningoftheprojectinApril2019(490,560EUR).Thereisstillapprox.684640EURleftoftheapprovedfunding,afterthissecondinstalment,thatistobereceivedagainstreportsofprojectprogressmovingforward.Theestimatedprojectdurationis13February2019–30September2020.Thetermsofthefundinghavebeencommunicatedinapreviouspressreleasedated17April2019.

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REVENUES & PROFIT / LOSS

The graph above describes the development of Revenue and EBITDA per quarter in 2019, in thousand EUR.

RevenuesduringtheperiodJanuary-September2019were389664,60EUR(1796440,27EURoncorrespondingperiod2018),whichisadecreaseof-78,31%comparedtothecorrespondingperiod2018.Duringthethirdquarter,thecompanyfocusedonthefirstupdatesofre-workedversionofHeroesofWarlandandstartedanewservicebusinessprojectwithAvalancheStudioswhichreflectsinincreasingrevenues.

MaterialsandservicesduringtheperiodJanuary–September2019were-724,3KEUR(-994,2KEUR).Thisincludesthirdpartycostsrelatedtogamedevelopmentandmaintenance(outsourcedservices),aswellasmarketingcosts,suchasuseracquisitioncosts.UAcostsJanuary–Septemberwere-386,9KEUR(-948,1KEURoncorrespondingperiod2018).

OtheroperatingexpensesduringtheperiodJanuary-September2019were-1080,8KEUR(-2170,0KEUR).Thisincludesthirdpartycostsrelatedtoaccounting,legal,stockmarketexpenses,hardwareandsoftware,travelexpenses,officecostsandothercosts.

EBITDAamountedto-2103,7EUR(-2984,2EURoncorrespondingperiod2018).EBIT:Operatingresultbeforefinancialitemsamountedto-2573,5EUR(-3454,0EUR).Thenetresultfortheperiodamountedto-2581,5EUR(-3469,4EUR).

Q4

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-400

-600

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-1000

-1200

-1400

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200

400

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EBITDA(KEUR)

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CASH FLOW AND FINANCIAL POSITIONNetcashfromoperatingactivitiesduringtheperiodJanuary-September2019was-2351,5KEUR(-3361,2KEURin2018forthecorrespondingperiod).Netcashusedininvestingactivitieswas-905,9KEUR(0,0KEUR).Netcashusedinfinancingactivitieswas412,0KEUR(1282,9EUR).Cashandcashequivalentsattheendoftheperiodwere414,7KEUR,andthecompanyhad448,0KEURofshort-termreceivablesasof30September2019.

INVESTMENTS AND DEPRECIATION Partoftheexpensesfromgamesinproductionwereexpensedascosts.Partoftheexpensesfromthedevelopmentofthere-workednewversionofHeroesofWarland,andrelatedtechnologywerecapitalizedduringtheperiodagainstexpectedfutureprofits.ThisisvisibleintheIncomestatementunderManufacturingforenterprise’sownuse.

NewdevelopmentcostswerecapitalizedfromJuly-Septemberbyatotalof319621,13EUR.Thisincludesthirdpartycostsrelatedtothegamedevelopmentandmaintenance(outsourcedservices),personnelcostsandothercosts,whicharedirectlyrelatedtotheproject.Thedepreciationofthecapitalizeddevelopmentcostsbeginswhentheprojectiscompleted.

Depreciationsweredoneaccordingtothedepreciationplan,consistingmostlyofcapitalizeddevelopmentcostsfrompreviousyears.Thedepreciationsamountedtoatotalof–469784,25EURfortheperiodofJanuary-September2019.

EMPLOYEESThenumberofemployeesonSeptember30,2019was33.

MARKETNitroGamesoperatesintheglobalgamesmarketasadeveloperandpublisherofmobilegames.Historically,theCompanyhasoperatedinavarietyofmarketsegments,includingPCandconsolegamesaswellasmobilegames.NitroGamesnowfocusesonoperatinginthemobilegamesmarket.

2018globalgamesmarketwasestimated$134,9billioninrevenues,Mobilegamingwasthelargestsegmentin2018,totalingestimated$63,2billionandaccountingfor47%ofthetotalglobalmarket.Themajorityofgamersinmobilesegmentareplayingwithsmartphones.2,4billionpeoplewillplaymobilegamesaroundtheworldin2019.

AccordingtoindustryresearchfirmNewZoo,theglobalgamesmarketisexpectedtogrowtomorethan$174billionin2021.

Source: NewZoo 2019

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THE SHARE AND SHAREHOLDERSNitroGames’sharesaretradedonNasdaqFirstNorthGrowthStockholmsinceJune16,2017.

ThelargestshareholdersasofSeptember30,2019were:

Shareholders Number of shares % of shares and votes JasperusS.A.1 605545 16,74SavoxInvestmentsS.A.2 433412 11,98SwedbankRoburNYTeknikBTI 283460 7,84FeatInvestAb3 229717 6,35LudvigStrigéus 168425 4,66AvanzaPensionförsäkringAb 140564 3,89AktiaNordicMicroCap 138150 3,82AnttiVillanen 129254 3,57AjorantaGroupAb4 117103 3,24OP-FinlandMicroCapFund 108400 3,00Others 1262298 34,91The total numbers of shares 3 616 328 100,00

1JasperusS.A.iscontrolledto100%byJacobEhrnrooth. 2SavoxInvestmentsS.A.iscontrolledbyJacobEhrnroothwithfamily. 3FeatInvestAbiscontrolledbyJohanBiehl. 4AjoRantaGroupAbiscontrolledto100%byCFOMattiNikkola.Thetotalnumberofsharesasof30September2019is3616328.

RELATED PARTY TRANSACTIONSTherewerenosignificantrelatedpartytransactionsduringtheInterimPeriod.

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ACCOUNTING AND VALUATION PRINCIPLESTheCompanypreparesitsfinancialstatementsinaccordancewiththeFinnishAccountingAct(31.12.1997/1336,asamended),FinnishAccountingOrdinance(31.12.1997/1337,asamended),andinstructionsandstatementsoftheAccountingBoardoperatingundertheMinistryofEmploymentandtheEconomy(the“FinnishAccountingStandards”,“FAS”).InapplicablecasesTheCompanycapitalizestheexpensesusedfordevelopmentofproductsandtechnology,includingpersonnelcostsandprocurement,subtractedwithsubsidiesandgrantsreceivedforthese,totheextentthattheyareexpectedtogenerateeconomicbenefitsinthefuture.Amortizationanddepreciationforintangibleandtangibleassetsarecalculatedbyusingtheestimatedusefullifeoftheasset.Fortangibleassetsdepreciationaccordingtoplanstartsduringthecalendarmonthwhenthecommoditywastakenintouseandforintangibleassetswhenrevenuestartstoaccruefromthedevelopmentwork,typicallyduringtheyearafterthedevelopmentwork.

TheCompany’scapitalizeddevelopmentcostsareamortizedoverafive(5)yearperiodonastraight-linebasis.Formachinesandequipmenta25%expenditureresiduedepreciationismadeyearly.

REVIEWThisreporthasnotbeenreviewedbythecompany’sauditors.

CERTIFIED ADVISERNitroGames’CertifiedAdviserisAugmentPartnersAB,phone+46850565172,email:info@augment.se.

INVESTOR CONTACTThelatestinformationonthecompanyispublishedonthecompany’swebsitewww.nitrogames.com/investors.Thecompanycanbecontactedbyemailjussi@nitrogames.com,orbyphone+358443881071.

FINANCIAL CALENDARYear-endreport2019,Jan–Dec2019,17February2020AnnualReport2019,17April2020InterimReport,Jan–Mar2020,27April2020AnnualGeneralMeeting2020,8May2020

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NOTEThiscompanyannouncementcontainsinformationthatNitroGamesOyjisobligedtomakepublicpursuanttotheEUMarketAbuseRegulation.Theinformationwassubmittedforpublicationbycontactpersonmentionedbelowon28October2019at09:00(EET).

FOR FURTHER INFORMATION, PLEASE CONTACT:

Jussi Tähtinen, CEO Sverker Littorin, Board member, IR-Advisor+358443881071 +46708755309jussi@nitrogames.com sverker.littorin@nitrogames.fi

BOARD DECLARATION

TheBoardofDirectorsandtheChiefExecutiveOfficerherebycertifythatthisInterimReportgivesatrueandfairviewofthecompany’sandthegroup’soperations,financialpositionandresultsofoperations,anddescribessignificantrisksanduncertaintiesfacedbythecompany.

Kotka, Finland, 28 October 2019

JacobEhrnrooth,Chairman

AnttiVillanen IlkkaLassila SverkerLittorin

WilhelmTaht JohanBiehl OliverKern

JussiTähtinen,CEO

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KEY FINANCIALS

Jul-Sep2019

Jul-Sep2018

Jan–Sep2019

Jan–Sep2018

Full Year2018

NitroGamesOyj

NitroGroup NitroGamesOyj

NitroGroup NitroGamesOyj

AuditedRevenue(EURthousand) 317,7 744,7 389,7 1796,4 2204,2Operatingprofit/loss(EURthousand) -416,7 -987,9 -2573,5 -3454,0 -5734,4Operatingprofit/loss%(EBIT%) -131,2% 132,6% -660,4% -192,3% -260,2%EBITDA(EURthousand) -260,1 -831,3 -2103,7 -2984,2 -5101,0EBITDA% -81,9% -111,6% -539,9% -166,1% -231,4%Netprofit/loss(EURthousand) -419,3 -993,2 -2581,5 -3469,4 -5748,8Cashflowgeneratedfromoperations(EURthousand)

-507,0 -1104,0 -2351,5 -3361,1 -4939,9

Equityratio(%) 56,83% 50,30% 56,83% 50,30% 84,00%Numberofshares,average 3616328 2439169 3616328 2439169 2668910Numberofsharesattheendoftheperiod

3616328 2618328 3616328 2618328 3616328

NumberofShareoptions 449368 298500 449368 298500 307868Equitypershare(EUR) 0,4 0,4 0,4 0,4 1,1Earningspershare(EUR)undiluted -0,1 -0,4 -0,7 -1,3 -1,6Earningspershare(EUR)diluted -0,1 -0,3 -0,6 -1,2 -1,5Netdebt(EURthousand) 556,9 845,9 556,9 845,9 -2523,8Numberofemployees 33 54 42 54 51

(Whencomparinginformationtopreviousyearquarterlyinformation,previousquarterlyyearistheconsolidatedgroupfigures,includingparentcompanyNitroGamesPlcanditssubsidiariesNitroGamesAlphaOyandNitroGamesBetaOy.Subsidiarieshavemergedtoparentcompanyin31.12.2018.)

(Thecompanywillmakechangesinterminologyusedinitsfinancialreportingatthebeginningof2019.Inthepastyears,thecostofuseracquisition(UA)hasbeenbookedunderOtheroperatingExpenses.Startingfrom2019,thesecostswillbemovedunderMaterialandServices.)

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INCOME STATEMENT

EUR thousand Jul-Sep2019

Jul-Sep2018

Jan-Sep2019

Jan-Sep2018

Full Year2018

NitroGamesOyj

NitroGroup NitroGamesOyj

NitroGroup NitroGamesOyj

AuditedRevenue 317,7 744,8 389,7 1 796,4 2 204,2Manufacturingforenterprise'sownuse

319,6 0,0 905,9 0,0 0,0

Otheroperatingincome 2,0 3,0 6,9 24,7 69,0Rawmaterialsandservices -226,2 -366,8 -724,3 -994,2 -1409,3Personnelexpenses -382,5 -526,8 -1601,1 -1641,3 -2355,3Depreciationandreductioninvalue -156,6 -156,6 -469,8 -469,8 -633,4Otheroperatingcharges -290,8 -685,5 -1080,8 -2169,9 -3609,6Operating profit (loss) -416,7 -987,9 -2 573,5 -3 454,0 -5 734,4Financialincomeandexpenses -2,6 -5,3 -8,0 -15,4 -14,4Profit before taxes and appropriations

-419,3 -993,2 -2 581,5 -3 469,4 -5 748,8

Appropriationsandtaxes 0,0 0,0 0,0 0,0 0,0Financialstatementtransfers 0,0 0,0 0,0 0,0 0,0Profit (loss) for the fiscal year -419,3 -993,2 -2 581,5 -3 469,4 -5 748,8

Theseunauditedfinancialstatementsreportfortheperiod1.1.-30.9.2019havebeenpreparedaccordingtoFinnishAccountingStandards(FAS)andNasdaqFirstNorthGrowthmarketplacerulesandregulations.

Comparability of data against the previous financial year

Whencomparingthefiguresagainstthepreviousfinancialyear,itshouldbenotedthatthefiguresinthepreviousfinancialstatementsarethefiguresfortheconsolidatedfinancialstatements,whichincludedtheparentcompanyNitroGamesOyjanditssubsidiariesNitroGamesAlphaOyandNitroGamesBetaOy.Thesesubsidiarieshavemergedwiththeparentcompanyon31.12.2018.

Thecompanywillmakechangesinterminologyusedinitsfinancialreportingatthebeginningof2019.Inthepastyears,thecostofuseracquisitionhasbeenbookedunderOtheroperatingexpenses.Startingfrom2019,thesecostswillbemovedunderMaterialandServices.

(Whencomparinginformationtopreviousyearquarterlyinformation,previousquarterlyyearistheconsolidatedgroupfigures,includingparentcompanyNitroGamesPlcanditssubsidiariesNitroGamesAlphaOyandNitroGamesBetaOy.Subsidiarieshavemergedtoparentcompanyin31.12.2018.)

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BALANCE SHEET

16

EUR thousand 30 Sep 2019Nitro Games Oyj

30 Sep 2018Nitro Group

Full Year 2018Nitro Games Oyj

Audited

ASSETSNon-currentassetsIntangibleassets 1358,9 1085,8 922,4Tangibleassets 1,3 1,8 1,7Non-currentassetstotal 1360,2 1087,6 924,1Currentassets

ReceivablesLong-termdebtors 27,7 33,5 33,6Short-termdebtors 448,0 872,6 379,0Totalreceivables 475,6 906,2 412,6Cashinhandandatbanks 414,7 289,3 3260,1Currentassetstotal 890,4 1195,4 3672,7ASSETS TOTAL 2 250,5 2 283,0 4 596,8

EQUITY AND LIABILITIESEquity Sharescapital 80,0 80,0 80,0Investedunrestrictedequityreserve 17069,0 12483,5 17069,0Retainedearnings(loss) -13288,6 -7946,3 -7539,8Profit(loss)forthefiscalyear -2581,5 -3469,4 -5748,8Equitytotal 1278,9 1147,8 3860,4LIABILITIES Non-current Loansfromcreditinstitutions 549,6 157,2 129,6Othercreditors 0,9 447,9 0,9Non-currenttotal 550,5 605,1 130,6Current Loansfromcreditinstitutions 94,1 102,7 94,1AccountsPayables 152,5 209,8 259,3Othercreditors 28,6 33,3 47,7Accrualsanddeferredincome 145,8 184,3 204,7Currenttotal 421,1 530,1 605,8Liabilitiestotal 971,6 1135,2 736,4EQUITY AND LIABILITIES TOTAL 2 250,5 2 283,0 4 596,8

CASH FLOW STATEMENT

17

EUR thousand Jul-Sep2019

Jul-Sep2018

Jan–Sep2019

Jan–Sep2018

Full Year2018

Cash flows from operating activities:

Netprofit(loss)beforetaxation,andextraordinaryitems(+/–)

-419,3 -993,2 -2581,5 -3469,4 -5748,8

Adjustmentsfor:

Depreciationaccordingtoplan 156,6 156,6 469,8 469,8 633,4

Unrealisedforeignexchangewinsandlosses(+/–)

0,0 0,0 0,0 0,0 0,0

Othernon-cashitems(+/–) 0,0 0,0 -586,3 0,0 -39,2

Financialincomeandexpenses(+/–) 2,6 5,3 8,0 15,3 14,4

Otheradjustments(+/–) 0,0 0,0 586,3 0,0 0,0Operatingprofitbeforeworkingcapitalchanges -260,1 -831,3 -2103,7 -2984,3 -5140,2

Workingcapitalchanges:

Increase(–)ordecrease(+)inlong-termtradeandotherreceivables

0,0 -21,2 5,9 -16,9 -17,0

Increase(–)ordecrease(+)intradeandotherreceivables

-255,6 -313,7 -69,0 -517,0 -24,0

Increase(–)ordecrease(+)ininventories 0,0 0,0 0,0 0,0 0,0

Increase(+)ordecrease(–)intradepayables 8,7 62,2 -184,7 157,0 241,3

Cashgeneratedfromoperations -507,0 -1104,0 -2351,5 -3361,2 -4939,9

Cashflowbeforeextraordinaryitems -507,0 -1104,0 -2351,5 -3361,2 -4939,9

Cashflowfromextraordinaryitems(+/–) 0,0 0,0 0,0 0,0 0,0

Netcashfromoperatingactivities(A) -507,0 -1104,0 -2351,5 -3361,2 -4939,9

Cash flows from investing activities:

Purchaseoftangibleandintangibleassets(–) -319,6 -905,9

Net cash used in investing activities (B) -319,6 0,0 -905,9 0,0 0,0

Cashflowsfromfinancingactivities:

Proceedsfromissuanceofsharecapital 0,0 0,0 0,0 1369,1 5954,7

Purchaseofownshares(–) 0,0 0,0 0,0 0,0 0,0

Proceedsfromsaleofownshares 0,0 0,0 0,0 0,0 0,0

Proceedsfromshort-termborrowings 0,0 0,0 0,0 0,0 0,0

Preceedsfromshort-termreceivables 0,0 0,0 0,0 0,0 0,0

Repaymentofshort-termborrowings(–) 0,0 0,0 0,0 0,0 -8,6

Proceedsfromlong-termborrowings 0,0 0,0 490,6 0,0 0,0

Repaymentoflong-termborrowings(–) -27,5 -23,5 -70,6 -70,6 -98,4

Intrestpaidandcontributionsfromfinancialexpenses(-)

-2,6 -5,8 -8,0 -15,6 -15,3

Dividends(-) 0,0 0,0 0,0 0,0 0,0

Taxes 0,0 0,0 0,0 0,0 0,0

Net cash used in financing activities (C) -30,1 -29,3 412,0 1 282,9 5 832,4

Net increase/decrease in cash and cash equivalents (A + B + C)

-856,7 -1 133,3 -2 845,4 -2 078,3 892,5

Cashandcashequivalentsatbeginningofperiod

1271,5 1422,6 3260,1 2367,5 2367,5

Cash and cash equivalents at end of period 414,7 289,3 414,7 289,2 3 260,1

CHANGE IN EQUITY

Asummaryreportshowingchangesinequityduringthefinancialquarterlyperiod,includingcomparativefiguresforthesameperiodduringthepreviousfinancialyear.

EUR thousand Share capital

Invested unrestricted

equity reserve

Retained earnings

(loss)

Profit (loss) for the financial

year

Total equity

Equity 1 Jul 2019 80 17069 -13289 -2162 1698Sharesissued 0Profit(loss)forthefinancialperiod -419 -419Equity 30 Sep 2019 80 17069 -13289 -2581 1279

Equity 1 Jul 2018 80 12483 -7946 -2476 2141Sharesissued 0

Profit(loss)forthefinancialperiod -993 -993Equity 30 Sep 2018 80 12483 -7946 -3469 1148

Equity 1 Jan 2019 80 17069 -13289 0 3860Sharesissued 0Profit(loss)forthefinancialperiod -2581 -2581Equity 30 Sep 2019 80 17069 -13289 -2581 1279

Equity 1 Jan 2018 80 11114 -7946 0 3248Sharesissued 1369 1369Profit(loss)forthefinancialperiod -3469 -3469Equity 30 Sep 2018 80 12483 -7946 -3469 1148

Equity 1 Jan 2018 80 11114 -7540 0 3654Sharesissued 5955 5955Profit(loss)forthefinancialperiod -5749 -5749Equity 31 Dec 2018 80 17069 -7540 -5749 3860

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